Regulatory Alerts2011-01-01
Circular No. 1 of 2011 on Custodianship Activity Regulations
The Egyptian Capital Market Authority issued Circular No. 1 of 2011 to enforce compliance with Articles 50 and 52 of the Central Deposit and Registration Law's Executive Regulations following supervisory findings of custodians' failures to retain essential client data, contracts, and correspondence. The directive mandates licensed custodianship entities to maintain comprehensive client records, implement identity verification systems for beneficial owners, issue monthly detailed account statements, and continuously update client files with signed contracts, KYC forms, and corporate governance documents. These measures are established as a continuous compliance requirement to safeguard the Egyptian capital market and protect its participants from operational and regulatory risks.